The following table shows the sales and average book value of fixed assets for three dif-ferent companies from three different industries for a recent year:Average BookValue of FixedAssets (in millions)Sales (inmillions)Company (Industry)$ 26,450$ 74,989Alphabet (Google) Inc. (Internet)Comcast Corporation (communications)Wal-Mart Stores, Inc. (retail)74,51032,309485,651117,281a. For each company, determine the fixed asset turnover ratio. Round to one decimal place.Explain Comcast's fixed asset turnover ratio relative to the other two companies.b.

a.Calcualte fixed asset turnover ratios:

Answered: The following table shows the sales and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Additionally, the company informed the following: Net income = $156,042 Sales = $4,063,589 Determine the following values for the company: Total asset turnover ratio _____________ Fixed asset turnover ratio _____________
The following table provides summary data for Target and its competitors, Kohl's and Wal-Mart. (in millions) Target Kohl's Wal-Mart Company assumed value -- $13,487 $322,123 Equity assumed value -- $10,922 $272,541 NOPAT $3,260 $980 $8,312 Net income $2,937 $801 $6,670 Net nonoperating obligations (assets) $11,340 $2,565 $49,582 Common shares outstanding 510.9 shares 159.0 shares 2,844.0 shares (a) Compute the price to NOPAT ratio for both Kohl's and Wal-Mart. Round your answers to two decimal places.Kohl's Answer:Wal-Mart Answer:(b) Use Kohl's and Wal-Mart as comparables, along with the company value to NOPAT ratios from part (a), and then estimate for Target its company intrinsic value, its equity intrinsic value, and its equity intrinsic value per share. Round the intrinsic value and equity intrinsic value to the nearest million and the value per share to the nearest cent.Average of the two rounded ratios in (a) aboveAnswer (Round to two decimal places.)
Practice Problem Below are the balance sheet and income statement for Major, Inc. December 31 2007 2006Cash $ 29,700 $ 10,200 Accounts receivable (net) 53,400 20,300 Inventory 39,000 42,000 Long-term investments 0 15,000 Plant Assets, net of depreciation 180,900 125,000 Total Assets $303,000 $212,500Accounts payable $ 16,000 $ 26,500 Accrued liabilities 28,000 17,000 Long-term notes payable 40,000 50,000 Common stock 150,000 90,000 Retained earnings 69,000 29,000 Total Liabilities and Owner’s Equity $303,000 $212,500Year ended December 31, 2007Sales Revenue $340,000 Cost of Goods Sold (200,000) Operating Expenses (58,400) Depreciation Expense (10,600) Gain on sale of investments 4,000Net Income $ 75,000Additional information: A) In 2007, Major, Inc didn’t sell plant asset and didn’t purchase additional investment.B) In 2007, no shares were repurchased and no new debt was issued. 1. Prepare the Statement of Cash Flows…
Calculate the total asset turnover (sales / total assets) for the firm below. Sales 5000 COGS $1,200 Depreciation $800 Interest $500 Net Income $200 Total Assets 1400
following are the financial statements of Perfect Ltd for last year and this year: Income Statement for the year ended 31 December Last Year (000) This Year (000) Turnover 15,000 25,600 Cost of sales (7,496) (11,618) Gross profit 7,504 13,982 Operating expenses (4,410) (6,174) Operating profit 3,094 7,808 Interest payable (432) (912) Profit before taxation 2,662 6,896 Taxation (420) (780) Profit for the year 2,242 6,116 Balance sheet as at 31 December Last Year (000) This Year (000) Non-current assets 6,500 14,200 Current assets Inventories 2,418 4,820 Trade receivables 1,614 2,744 Other receivables 268 402 Cash 56 8 4,356 7,974 Total assets 10,856 22,174 Equity Ordinary shares of Rs. 0.50 each 3,600 3,600 Capital reserves 1,904 1,904 Retained profit 1,370 3,496 6,874 9,000 Non- current liabilities Loan notes 1,500 5,330 Current…
calculate the quick assets (in $) and acid test ratio for the given company. round ratios to the nearest hundredth.
Below are extracts from the financial statements of Charlton Ltd: Statement of profit or loss for the year ended 31 December 2020 Revenue 214,550 Cost of sales (182,000) Gross profit 32,550 Investment income 4,760 Loss on disposal (40) (6,300) (3,500) Distribution costs Administrative expenses Profit from operations 27,470 Finance costs (2,800) Profit before tax 24,670 (2,100) 22,570 Income tax expense Profit for the period Statements of financial position 31 December 2020 31 December 2019 Assets Non-current assets Property, plant and equipment 15,920 5,950 Investments 17,500 17,500 33,420 23,450 31 December 2020 31 December 2019 Assets Non-current assets Property, plant and equipment 15,920 5,950 Investments 17,500 17,500 33,420 23,450 Current assets Inventories 7,000 13,650 Trade and other receivables 13,300 8,400 Cash and cash equivalents 2,870 1,120 23,170 23,170 Total assets 56,590 46,620 Equity and liabilities Capital and reserves Share capital 7,000 6,300 Share premium Retained…
The following is the Statement of Financial Position of Target Limited, a real estate company in Accra. Target Limited Statement of Financial Position As at December 31, 2017 2016 GH¢ GH¢ Property, Plant & Equipment 881,121 1,058,283 Investment Property 2,889,327 2,818,287 Total Non-Current Assets…
Sherwood, Inc., had the following current assets and current liabilities at the end of two recent years: Year 2(in millions) Year 1(in millions) Cash and cash equivalents $4,165 $4,528 Short-term investments, at cost 2,958 8,408 Accounts and notes receivable, net 9,404 8,624 Inventories 1,771 787 Prepaid expenses and other current assets 590 291 Short-term obligations (liabilities) 315 3,342 Accounts payable and other current liabilities 7,453 6,813 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. Year 2 Year 1 Current ratio fill in the blank 1 fill in the blank 2 Quick ratio fill in the blank 3 fill in the blank 4
McDonald’s Corporation (MCD) reported the following balance sheet and income statement data for two recent years: (amounts are in $ millions) Total assets Net Income SalesYear 1: $33,803.70 $5,192.30 $22,820.40Year 2: $32,811.20 $5,924.30 $21,025.20 What was McDonald’s asset turnover ratio for Year 2?
Current asset information for Hundred Dollar Tree is presented below. Cash and cash equivalents $ 1,246,743 Marketable securities 324,166 Accounts receivable (net) Inventories Prepaid expenses Other current assets Total current assets 516,357 852,443 110,339 1.634.423 $4,684,471 Hundered Dollar Tree has a current ratio of 1.8. What is Hundred Dollar Tree's quick ratio? A) 0.69 B) 0.80 C) 0.78 D) 0.89
X-1 Corp's total assets at the end of last year were $420,000 and its EBIT was $47,500. What was its basic earning power (BEP) ratio? O a. 15.08% O b. 11.31% O c. 10.16% O d. 8.48% O e. 5.65%

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